Canadian Solar upgrades Q4 forecast, reviews PG&E situation

Solar power station. Featured Image: worradirek/Shutterstock.com

February 6 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) today revised upwards its previous guidance for fourth-quarter (Q4) shipments and revenue, and provided a preliminary assessment of the impact PG&E’s bankruptcy filing could have on the company.

The solar power firm said it now anticipates shipments of 1.9 GW-1.95 GW in the fourth quarter of the year instead of 1.67 GW-1.72 GW. Net revenue is seen at between USD 850 million (EUR 747m) and USD 900 million, rather than USD 690 million-800 million. As per the company’s Q4 gross margin, it is expected to be in the range of 27% to 28% compared to the previous guidance of 24% to 26%.

As previously announced, PG&E Corporation (NYSE:PCG) and its fully-owned California utility Pacific Gas and Electric Company filed for bankruptcy late last month. This prompted a number of renewable energy companies with tie-ins to review their exposure to the process.

Canadian Solar said that it has been closely monitoring the situation, but, at this point, can only provide a preliminary assessment. It added that the company has potential exposure with respect to power purchase agreements (PPAs) with PG&E for a 60-MW portion of the Gaskell West 2 project, which is seen to be put on stream in 2020.

Furthermore, the company has potential exposure with respect to interconnection deals with the utility regarding an early to mid-stage development scheme and the late-stage Slate project. Their combined capacity amounts to 700 MW.

Canadian Solar noted that, based on current information, the process has not affected the planned commercial operation dates for any projects within its pipeline.

The company will report its full Q4 and 2018 financial results on March 21, 2019.